• P156m profit before tax
• Share price up 76% to P7.76
• Namibian acquisitions to boost earnings
Leveraging off the core business of Fast moving Consumer Goods (FMCG) business and ensuring that other parts of the group operates effectively has helped maintain Sefalana Holding Group Limited’ s level of profitability.
Group Managing Director Chandra Chauhan has disclosed in the group’s 2014 Annual Report, which also marks Sefalana’s 40-year existence. Known as Sefalana sa Botswana when it commenced its operations in 1974 after the purchase of local operations of the Bechmalt Holdings, Sefalana has grown to become one the most profitable organisations of present day.
The group’s part of history is becoming the first company to publicly list with Botswana Stock Exchange (BSE) in 1989 in what was then known as Botswana Share Market.
In the latest financial reporting period, which came to an end on the 30th of April 2014, Sefalana made P156 million as profit before tax, which translates into six percent growth in profit, compared to the previous corresponding period.
“Profitability has grown over 40 percent in the two years since April 2012, which is over six times the average inflation of that period,” Chauhan said.
The year 2014 was a productive year for the 40-year-old company as it started to enter the regional market, starting with the opening of the first store outside Botswana in Katima Mulilo, Namibia.
This was followed by the acquisition of 12 metro stores from the Metro Namibia Group. The venture into the Namibian market is expected to grow both the top and bottom line profit for the forthcoming year.
During the past immediate period, Sefalana says it reduced its stake in soap manufacturing business, as it does not consider it to be group’s core activities. This led to Kgalagadi Soap Industries becoming an associate company and ceased to be a subsidiary on the 1st of May 2013.
With as many segments contained under Sefalana Holdings, Sefalana Cash (SefCash) and Carry under FMCG goods remains the major contributor to group’s revenue.
In the latest financial report in which the Sefalana garnered P2.4 billion as revenue, Sefcash made a contribution of 89 percent while also contributing 58 percent of the company’s profit before tax.
“The improved performance of our retail stores contributed significantly to the growth in this segment’s turnover and profit before tax,” said Chauhan in his report.
He said this has been achieved through better product offering at better prices and enhancing the shopping experience of their customers. While Sefalana profits has been swelling, the group’s share price has increased steadily form P4.40 by May 1 2013 to P7.76 as at April 30 2014 which represents which represents 76 percent increase during the 12 month period.
At 40, the group says it celebrates an age of maturity, independence, diversity and expansion. The diverse Sefalana Holdings portfolio consists of manufacturing and trading, which includes dealership in commercial motors and mechanised farming.